Parliament regards Prabowo's macroeconomic framework as reflecting optimism
The Chairman of the Indonesia DPR RI Commission XI, Mukhamad Misbakhun, welcomed the presentation of the Macro Economic Framework and Key Fiscal Policies (KEM-PPKF) for 2027 by President Prabowo Subianto at the DPR RI plenary session on Wednesday, 20 May. He said the policy direction shows an optimist government in maintaining momentum of national economic growth amid high global uncertainty. ‘The government shows a measured optimism. The growth target remains maintained, but the macro assumptions used also reflect caution in reading global dynamics,’ Misbakhun said in a written statement from Jakarta on Thursday, 21 May. He regards the 2027 growth target of around 5.8%–6.5% as demonstrating the government’s commitment to strengthening investment, domestic consumption, and the productive sectors of the nation. Meanwhile, the inflation assumption of 1.5%–3.5% is seen as reflecting efforts to protect purchasing power and price stability for the people.
He also views the assumed Rupiah exchange rate of Rp16,800 to Rp17,500 per US dollar and 10-year government bonds yield in the 6.5%–7.3% range as the government’s anticipation of volatility in international financial markets. Nevertheless, Misbakhun believes that a higher growth target must be accompanied by strengthening the real sector so that benefits are truly felt by the people through job creation and improved purchasing power.
Therefore, he emphasises that the 2027 State Budget (APBN) must be directed to strengthen national productivity through effective state spending, industrial downstreaming, and support for domestic business sectors.
‘Economic growth is not enough to be strong in macro numbers alone; it must also empower the people’s economy and reinforce the national business sector,’ he asserted.
On the other hand, Misbakhun reminded that the growth target must be supported by healthy fiscal space amid global pressures, particularly related to energy prices and Rupiah volatility. He noted that the Indonesia crude oil price assumption of US$70–US$95 per barrel indicates the government needs a flexible APBN capable of facing geopolitical shocks and world energy market fluctuations.
‘If oil prices rise when the Rupiah is under pressure, the impact could immediately affect energy subsidies, import costs, and domestic inflation. Therefore fiscal discipline must be safeguarded with prudent policies and consistent execution,’ he added. (E-3)
NasDem Party Chairman Surya Paloh is optimistic that the rupiah will strengthen following President Prabowo Subianto’s address on the KEM-PPKF 2027 in the DPR RI.
President Prabowo Subianto said the domestic market in Indonesia could be as large as Europe, supported by abundant natural resources and a demographic dividend.
The Palace explained why President Prabowo directly delivered the KEM-PPKF RAPBN 2027 in the DPR to unite the nation’s strength.
President Prabowo is scheduled to attend the DPR plenary session at the Parliament Complex in Jakarta on Wednesday, 20 May.
In his address, the President targeted 2027 growth at around 5.8–6.5% and state revenue at 11.82–12.40% of GDP. He hoped the President’s direct presence at the plenary podium to read the KEM-PPKF would not be a political tactic to appease the parliament.
According to Saan, the President’s direct appearance at the plenary podium is tangible evidence of the government’s seriousness. He explained that the state’s capacity is not measured solely by the size of the state budget. He noted that private sector contributions to growth are beginning to be visible, though not yet fully optimal.